Notes

Notes to and forming part of the financial statements for the year ended 30 June 2005

Note 1: Administered statements

1.1 Schedule of revenues and expenses administered on behalf of the whole-of-government

The department administers, but does not control, certain resources on behalf of the government as a whole. It is accountable for the transactions involving such administered resources, but does not have the discretion to deploy resources for the achievement of the department’s objectives.

The schedule of revenues and expenses administered on behalf of the whole-of-government should be read in conjunction with the accompanying notes.

1.2 Schedule of assets and liabilities administered on behalf of the whole-of-government

The above schedule of assets and liabilities administered on behalf of the whole-of-government should be read in conjunction with the accompanying notes.

1.3 Schedule of Cash Flows administered on behalf of the whole-of-government

The schedule of Cash Flows administered on behalf of the whole-of-government should be read in conjunction with the accompanying notes.

Note 2: Summary of significant accounting policies

2.1 Objectives of funding

The Department of Education is responsible to the Minister for Education. The department provides services through:

Schools (pre-compulsory and compulsory)

A pre-compulsory and compulsory school system comprising 209 schools-140 primary schools, 12 special schools, 26 district high schools, and 31 high schools which is organised into 27 educational clusters to support coordinated service delivery particularly for students with high and/or additional needs;

Post-compulsory education and training

A post-compulsory education and training group which includes:

• 8 senior secondary colleges working in an educational cluster arrangement;
• the funding and provisions of vocational education and training services through TAFE Tasmania and other training providers, including the administration of apprenticeships and traineeships;
• the provision of Adult Education (transferred from TAFE Tasmania, refer note 10.3) programs which provide a diverse array of learning activities throughout the state for adults to participate in; and
• the implementation of Guaranteeing Futures initiatives including pathway planning, transition support and area taskforces.

State Library service

The State Library of Tasmania provides for the information, education, cultural and recreational reading needs of the Tasmanian community delivered through a network of 7 city and 41 branch public libraries, the State Reference Service, the Parliamentary Library, the Tasmanian Library, the WL Crowther Library and Allport Library and Museum of Fine Arts. The State Library also administers Tasmanian Communities Online, which provides a network of 64 Online Access Centres around the state, and the Department of Education Information Services Unit.

Archives Office of Tasmania

The Archives Office is the repository for all Tasmanian state and local government records which are no longer of immediate administrative use, but which are considered worthy of permanent or long-term preservation. It also has a major collection of non-government records and manuscripts.

Child care

The Child Care Unit which is responsible for licensing and monitoring all child care services under the Child Care Act 2001.

Organisational Support Units

The services provided by the department are supported by the following major organisational units: three education branches which operate in each geographical region for school and educational management; the Office of Curriculum Standards and Support; the Office of Leadership and Learning (OLL); the Office of Post-Compulsory Education and Training (OPCET); the Office of Educational Review (OER); the Tasmanian Qualifications Authority (TQA); the Finance Facilities and Business Strategy (FFBS) Branch; the Human Resources Management (HRM) Branch; and the Information Management Branch (IMB).

Outputs of the department

The individual outputs of the Department of Education are provided under the following output groups:

• Output Group 1 Pre-compulsory and compulsory education;
• Output Group 2 Post-compulsory education and training; and
• Output Group 3 Public information services.

This represents a new output structure for the department in 2004-05 compared with the output structure for 2003-04. The new structure better reflects the provision of services by the department and is also consistent with the format of the department’s annual report, thus providing an improved alignment between the budget, financial statements and the annual report.

Output Group 1: Pre-compulsory and compulsory education

Description

The purpose of this output is to provide a range of educational services that will help students develop intellectually, socially, morally, emotionally and physically in a stimulating, inclusive and supportive environment. These services are focused on the delivery of education to students in schools enrolled in classes up to Year 10.

The department’s outcomes to which this output group contributes are:

• all students in Tasmanian government schools receive quality teaching leading to effective learning;
• all students in Tasmanian government schools receive teaching that appropriately utilises information and communications technology leading to more effective learning;
• a fair and just distribution of the benefits of schooling across all students and minimal differences in measurable outcomes between identified student groups;
• all students participate fully in schooling and complete schooling until the end of year 12 or the equivalent;
• students perform at nationally comparable achievement levels;
• parents of students continue to participate in the schooling of their children, and the community and the general public continue to be well informed on educational matters and involved in their school communities; and
• improved access to child care services that meet State licensing guidelines and national standards for all parents, carers and families.

Output Group 2: Post-compulsory education and training

Description

The purpose of this output group is to facilitate the provision of post-compulsory education and formally recognised vocational education and training (VET) by registered training providers together with non-accredited adult education. This includes the provision of VET by TAFE Tasmania under Agreement.

The outputs in this group directly address the long-term vision and goals set out in Tasmania Together, Learning Together, Tasmania: A State of Learning as well as the Australian National Training Authority Agreement and agreed national strategies for vocational education and training including Bridging Pathways, Partners in a Learning Culture and the Industry Development Plan.

Output Group 3: Public information services

Description

The purpose of this output group is to provide statewide library and information services and archival services in accordance with the goals of Tasmania Together and Learning Together.

The department’s outcomes to which this output group contributes are:

• an informed, empowered and technologically literate community of lifelong users of information and information technology;
• an improved quality of life for all Tasmanians and a culturally rich community;
• sustained economic development in the information age through community and individual innovation;
• equity of access to information and to resources for innovation; and
• the enhanced capacity and increased opportunity for the community to have access to and use its government’s records of continuing value and other Tasmanian archival material.

Agency activities contributing toward these outcomes are classified as either departmental or administered. Departmental activities involve the use of assets, liabilities, revenues and expenses controlled or incurred by the Agency in its own right. Administered activities involve the management or oversight by the Agency on behalf of the government of items controlled or incurred by the government.

The department is predominantly funded through parliamentary appropriations. The financial report encompasses all funds through which the department controls resources to carry on its functions.

In the process of preparing accrual based reports for the department as a single entity, all intra-entity transactions and balances have been eliminated. The department is also responsible for TAFE Tasmania. TAFE Tasmania operates as a statutory authority under the provisions of the TAFE Tasmania Act 1997. Accordingly, it has been determined that TAFE Tasmania is a separate reporting entity and the associated transactions are not consolidated into the Department of Education’s financial statements.

2.2 Basis of accounting

The financial statements are a general purpose financial report and have been prepared in accordance with:

• the Treasurer’s instructions issued under the provisions of the Financial Management and Audit Act 1990; and
• Australian Accounting Standards in particular AAS29 Financial Reporting by Government Departments and Urgent Issues Group Abstracts.

Assets and liabilities are recognised in the department’s Statement of Financial Position when it is probable that future economic benefits will flow and the amounts of the assets or liabilities can be reliably measured.

Revenues and expenses are recognised in the department’s Statement of Financial Performance when the flow or consumption or loss of economic benefits has occurred and can be reliably measured. Control arises in the period of appropriation.

The continued existence of the department in its present form, undertaking its current activities, is dependent on government policy and on continuing appropriations by Parliament for the department’s administration and activities.

Transactions and balances administered on a whole-of-government basis

The department administers, but does not control, certain resources on behalf of the government as a whole. It is accountable for the transactions involving such administered resources, but does not have the discretion to deploy resources for the achievement of the department’s objectives.

Administered assets, liabilities, expenses and revenues are disclosed in the notes to the financial statements, forming a part of the general purpose report for the department.

The administered items are disclosed on the same basis as is described for the financial statements of the department.

The schedules of administered revenues and expenses, assets and liabilities, and cash flows are prepared on the same basis, and using the same policies as for departmental items, except where otherwise stated.

Activities undertaken in a trustee or agency capacity

The department acts under a trustee or agency arrangement in the administration of certain library and student funds. These activities are neither administered nor controlled and are therefore not recognised in the financial statements. However, note 13 to the financial statements discloses in aggregate the amount collected and distributed to external parties during the reporting period and any amount undistributed at 30 June 2005.

Revenue or commission earned by the department under a trustee or agency arrangement, together with any related expenses, are recognised as controlled transactions.

2.3 Revenue

The revenues described in this note are revenues relating to the ordinary activities of the department.

Revenues are recognised in the Statement of Financial Performance when it is probable that the inflow or other enhancement or saving in outflows of future economic benefits has occurred and can be measured reliably.

a) Revenues from government-appropriations

Appropriations, whether recurrent or capital, are recognised as revenues in the period in which the department gains control of the appropriated funds. Control arises in the period of appropriation.

b) Australian government grants

Grants payable by the Australian government are recognised as revenue when the department gains control of the underlying assets.

c) User charges

Amounts earned in exchange for the provision of goods and services are recognised when the good or service is provided.

d) Interest

Interest revenue is recognised as it accrues.

e) Fees and fines

Revenue from fees and fines is recognised upon the time the obligation to pay arises, pursuant to the issue of a notice or invoice.

The collectability of debts is assessed at balance date and specific provision is made for doubtful debts.

f) Gross proceeds from the disposal of assets

Revenue from the sale of non-current assets is recognised when control of the asset has passed to the buyer.

g) Resources received free of charge

Services received free of charge by the department, are recognised as revenue when a fair value can be reliably determined and at the time the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

h) Assets assumed (liabilities transferred)

Contributions of assets at no cost of acquisition or for nominal consideration are recognised at their fair value when the asset qualifies for recognition, unless received from another government agency as a consequence of restructuring of administrative arrangements, when book values from the transferor department may be used.

i) Other revenue from ordinary activities

Revenue from other sources, including revenue generated from school activities and also school levies, is recognised as revenue when the department obtains control over the assets comprising the contributions. Control is normally obtained upon their receipt.

j) Correction of fundamental errors

Fundamental errors, which render past financial reports unreliable, are disclosed separately on the face of the statement. Their nature is disclosed in the notes, as well as the amount of the correction relating to prior periods including, where practicable, a restatement showing the information that would have been recognised had the error not been made.

2.4 Expenses

The expenses described in this note are expenses arising from the ordinary activities of the department.

Expenses are recognised in the Statement of Financial Performance when it is probable that the consumption or loss of future economic benefits resulting in a reduction in assets and/or an increase in liabilities has occurred and the consumption or loss of future economic benefits can be measured reliably.

a) Employee entitlements

Employee entitlements include entitlements to wages and salaries, annual leave, sick leave, long service leave, superannuation and other post-employment benefits.

b) Depreciation and amortisation

Non-current assets having a limited useful life are systematically depreciated over their useful lives in a manner which reflects the consumption of their service potential.

Land, being an asset with an unlimited useful life, is not depreciated. Heritage assets are also not depreciated as their value does not diminish.

Depreciation is provided for on a straight-line basis, using rates which are reviewed annually. Major depreciation periods are:

The department undertook a revaluation of its land, building, and heritage assets during 2004-05. As part of this revaluation exercise the department reviewed and amended the useful lives of its building and related assets, as per the lives in the above list. These amendments were made based on advice from the valuers, Liquid Pacific Holdings Pty Ltd.

c) Grants and subsidies

Grants are recognised as expenses when paid.

d) Written down value of disposed physical assets

The written down value reflects the carrying value of the asset at the time of disposal.

e) Write down of assets

A revaluation decrement is recognised as an expense in the Statement of Financial Performance except to the extent that the decrement reverses a revaluation increment previously credited to, and still included in the balance of, an asset revaluation reserve in respect of that same class of asset. In this case, it is debited directly to that revaluation reserve.

Where an increment reverses a revaluation decrement previously recognised as an expense in the Statement of Financial Performance in respect of that same class of non-current assets, the revaluation decrement is recognised as revenue.

f) Resources provided free of charge

Services provided free of charge by the department, to another entity, are recognised as an expense when fair value can be reliably determined.

g) Correction of fundamental errors

See note 2.3 (j).

h) Other expenses from ordinary activities

Other expenses from ordinary activities are recognised when the associated service and supply has been provided.

2.5 Assets

Assets are recognised in the Statement of Financial Position when it is probable that the future economic benefits embodied in the asset will eventuate and the asset possesses a cost or other value that can be measured reliably.

a) Cash on hand and deposit accounts

Cash means notes, coins and deposits held at call with a bank or financial institution, for the department and schools, as well as funds held in the Special Deposits and Trust Fund.

b) Receivables

Receivables are recognised at the amounts receivable as they are due for settlement. Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable, are written off. A provision for doubtful debts is raised where some doubts exist as to collection.

c) Other assets

The department recognises some other small assets such as prepayments of expenditure, petty cash floats and GST input tax credits received.

d) Property, plant, equipment, library book stock and heritage assets

(i) Valuation basis

All non-current physical assets are valued in accordance with the provisions of:

• AASB1010: Recoverable Amount of Non-current Assets
• AASB1015: Acquisitions of Assets
• AASB1041: Revaluation of Non-current Assets
• Treasury Instruction 909: Definition and Recognition of Non-current Assets
• Treasury Instruction 910: Recording of Non-current Assets
• Treasury Instruction 911: Maintenance, Depreciation and Disposal of Non-government Assets
• Treasury Instruction 912: Valuation and Revaluation of Non-current Assets

Heritage assets: The State Library’s Tasmaniana, Crowther, and Launceston Local Studies Collections, are measured at fair value, being current market value, as at 1 July 2004. That is the estimated amount for which an asset should exchange between a willing buyer and a willing seller in an arms length transduction. The values were provided by Liquid Pacific Holdings Pty Ltd. In view of the fact that these items will not lose value, no depreciation has been applied.

Land and buildings: Land is valued at current market value. Buildings (including sundry structures and infrastructure assets) have been valued on a fair value basis, being market value or where a market does not exist on a written down current cost (WDCC) basis.

Plant and equipment: In accordance with the provisions of AASB1041 and Treasurer’s Instructions 910 and 912, the department’s plant and equipment assets are valued at historic cost, with the carrying amount of assets previously valued at deprival value being deemed as the historic cost value as at 30 June 2002. After this date all assets added to this asset class are based on the cost of the asset. This asset class will no longer be subject to revaluation.

Library book stock: In accordance with the provisions of AASB1041 and Treasurer’s Instructions 910 and 912, the department’s library book stock is valued at historic cost with the carrying amount of the assets being deemed as the historic cost value as at 30 June 2002.

All assets added to this asset class in future reporting periods will be added based on the cost of the books. This asset class will no longer be subject to revaluation.

(ii) Asset recognition threshold

The asset capitalisation threshold adopted by the department is $5,000 exclusive of GST. Assets valued at less than $5,000 are charged to the Statement of Financial Performance in the year of purchase (other than where they form part of a group of similar items which are significant in total). Major capital works (that is works with a capital cost in excess of $100,000) are capitalised at their total cost of construction, which includes professional fees. Capital works below this amount are expensed.

(iii) Revaluations

The department’s land, building and heritage asset classes were independently valued during 2004-05 with an effective date of 1 July 2004 by Liquid Pacific Holdings Pty Ltd. The revaluation of these assets was on a fair value basis in accordance with the provisions of AASB1041 Revaluation of Non-current Assets, AAS29 Financial Reporting by Government Departments and Treasurer’s Instruction 912 Valuation and Revaluation of Non-current Assets.

For future reporting periods, the department will adopt a revaluation policy which results in non-current assets subject to revaluation being revalued in accordance with the provisions of AASB116 Property Plant and Equipment.

2.6 Liabilities

Liabilities are recognised in the Statement of Financial Position when it is probable that the future sacrifice of economic benefits will be required and the amount of the liability can be measured at the fair value basis reliably.

a) Payables

Payables, including accruals not yet billed, are recognised when the department becomes obliged to make future payments as a result of a purchase of assets or services.

b) Provisions for Employee Entitlements

Liabilities for wages and salaries and annual leave are recognised, and are measured as the amount unpaid at the reporting date at remuneration rates that the department expects to pay in respect of employees’ services up to that date.

A liability for long service leave is recognised, and is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date, taking into account known increases, wage inflation rates and promotions.

c) Superannuation

No superannuation liability is recognised for the accruing superannuation benefits of departmental employees. This liability is held centrally and recognised within the Finance-General Division of the Department of Treasury and Finance.

During the reporting period, the department paid 11 per cent of salary in respect of contributory members of the Retirement Benefits Fund into the Superannuation Provision Account within the Special Deposits and Trust Fund.

The department paid the appropriate superannuation guarantee charge into the nominated superannuation fund in respect of non-contributors.

d) Other liabilities

Other liabilities, includes revenue received in advance, where the department has received funds for which goods or services have not yet been provided or where specific conditions have not been met. The revenue will be recognised in the following financial year when the department gains control of the funds when the goods or services have been provided or when specific conditions have been met.

2.7 Leases

The department does not enter into finance leases. The department has entered into a number of operating lease agreements for buildings, office equipment and plant and equipment, where the lessors effectively retain all of the risks and benefits incidental to ownership of the items leased. Equal instalments of lease payments are charged to the Statement of Financial Performance over the lease term, as this is representative of the pattern of benefits to be derived from the leased property.

2.8 Comparative figures

Comparative figures have been adjusted to conform to changes in presentation in these financial statements where required.

2.9 Rounding

All amounts in the financial statements have been rounded to the nearest thousand dollars unless otherwise stated.

2.10 Departmental taxation

The department is exempt from all forms of taxation except fringe benefits tax, payroll tax and the goods and services tax.

In the Statement of Cash Flows the GST component of cash flows arising from investing or financing activities which is recoverable from, or payable to, the Australian Taxation Office is, in accordance with the Australian Accounting Standards, classified as operating cash flows.

2.11 Adoption of Australian equivalents to international financial reporting standards (AEIFRS)

The department has identified a number of differences in accounting policies that will arise from adopting AEIFRS. Some differences arise because AEIFRS requirements are different from existing AASB requirements. Other differences could arise from options in AEIFRS.

Based on current information, the following key differences in accounting policies are expected to arise from adopting AEIFRS.

• AASB1 First-time Adoption of Australian Equivalents to International Financial Reporting Standards requires retrospective application of the new AEIFRS from 1 July 2004, with limited exemptions. Similarly, AASB108 Accounting Policies, Changes in Accounting Estimates and Errors requires voluntary changes in accounting policy and correction of errors to be accounted for retrospectively by restating comparatives and adjusting the opening balance of accumulated funds. This differs from current Australian requirements, because such changes must be recognised in the current period through profit or loss, unless a new standard mandates otherwise.
• AASB138 Intangibles requires that all research costs must be expensed and restricts capitalisation of development costs. The department will further review the requirements of this standard during 2005-06 and adjust its accounting policies accordingly.

2.11 a) Financial impact of the implementation of AEIFRS

The department has undertaken an assessment of the new standards issued under AEIFRS. As part of this assessment the department restated its opening balance sheet as at 1 July 2004. This resulted in a change in classification of certain line items, however it did not result in a major financial impact on the operating surplus for 2003-04 or the opening value of net assets.

The financial impact of these changes on the 2004-05 financial statements is expected to be minimal.

Note 3: Revenue from state government

Revenue from government includes revenue from appropriations, including appropriations carried forward under section 8A of the Public Account Act 1986 and from items reserved by law.

Section 8A of the Public Account Act 1986 allows for an unexpended balance of an appropriation to be transferred to an account in the Special Deposits and Trust Fund for such purposes and conditions as approved by the Treasurer. In the initial year, the carry forward is recognised as a liability, revenue received in advance. The carry forward is recognised as revenue in the following year, assuming that the conditions of the carry forward are met and the funds are expended.

Note 4: Events occurring after balance date

There have been no material events which have occurred after the reporting date.

Note 5: Revenues from ordinary activities

5.1 Australian government grants

5.2 User charges

5.3 Fees and fines

5.4 Gross proceeds and expense from the disposal of fixed assets

5.5 Resources received free of charge

5.6 Other revenues from ordinary activities

5.7 School levies

Note 6: Expenses from ordinary activities

6.1 Employee entitlements

6.2 Depreciation and amortisation

6.3 Grants and subsidies

6.4 Other expenses from ordinary activities

Note 7: Outputs of the department

7.1 Department’s outputs

Information about the department’s outputs and the expenses and revenues, which are reliably attributable to those outputs, is set out in the statement of outputs. Information about expenses and revenues administered by the department is given in the Schedule of Administered Expenses and Revenues. See also note 15.7. The budget information presented in the statement of outputs has not been subject to audit.

7.2 Statement of outputs

The outputs for the department in 2004-05 represent a new output structure to the structure provided for in 2003-04. Refer note 2.1, Outputs of the department. Actual output group expenditure for 2003-04 has been presented based on the former output structure, as previously reported. Actual expenditure for output group 4 and grants and subsidies for 2004-05 are incorporated into the actual and budget figures in output groups 1, 2 and 3 according to the new output structure. Expense by output actual expenditure for 2003-04 has not been reported due to the change in output structure.

Note: The following information has been prepared on an accrual accounting basis.

Outputs of the department

Output Group 1 - Pre-compulsory and compulsory education

1. Pre-compulsory and compulsory education-operating revenue. The variation between budget and actual figures for sales of goods and services and other revenue is due to all revenue received by schools being classified to other revenue in the budget figures while the actual revenue received is all treated as sales of goods and services. The classification of school revenue for budget and actual will be consistent from 2005-06 onwards. Additional revenue is also classified against this item for the additional Capital Investment Program (CIP) funding that was received from Treasury for essential maintenance.
2. Grants and transfer payments-the actual expenditure for grants and transfer payments is lower than the budget figure in output group 1. This is due to school payment eliminations between the department and schools. That is, the expenditure to schools from this category is eliminated when school transactions are consolidated into the department’s financial reports. School based expenditure is then recorded against other general expenditure categories consistent with the purpose of expenditure at the school level.
3. Pre-compulsory and compulsory education-information technology. The variance in expenditure for information technology is largely attributable to expenditure on the laptop for teachers program which was not included in the budget.
4. Pre-compulsory and compulsory education-other supplies and consumables. The major cause of the variance in this item is due to the loss on revaluation of the department’s buildings of which $45.873 million is attributed to this output group. Another significant variation is caused by the classification of all school related expenditure in the budget to this item. The actual expenditure for schools is classified across each of these expenditure items where applicable.
5. Pre-compulsory and compulsory education-maintenance and property services. The actual expenditure on this item is greater than the budget figure due to the inclusion of school related expenditure.

Output Group 2 - Post-compulsory education and training

6. Post-compulsory education and training-other revenue. This revenue relates to additional CIP funding during 2004-05 for Essential Maintenance.
7. Post-compulsory education and training-operating expenses. Variations exist between several expenditure items as a result of classification differences for the purchase agreement payment to TAFE. The budget for these payments is categorised predominantly as salaries and wages with the rest being Other Supplies and Consumables. The actual payments totalling approximately $73.5 million are categorised against grants and transfer payments. The overall variation is also caused by additional depreciation due to the transfer of buildings from TAFE Tasmania to the Department for Adult Education and a share of the loss on revaluation of buildings which was effected during 2004-05.

Output Group 3 - Public information services

8. Public information services-other revenue. This revenue relates to the recognition of the W L Crowther and Launceston Local Studies collections as heritage assets of the department during 2004-05.

Output Group 4 - Strategic development and evaluation services

Grants and subsidies

Capital Investment Program, Infrastructure Funds and Community Health and Well Being

9. The actual expenditure for the Capital Investment Program, Economic and Social Infrastructure Fund and Community Health and Well Being is lower than budget due to the capitalisation of building works to the Statement of Financial Position, thus reducing expenditure.

Note 8: Assets

8.1 Cash and deposits

8.2 Receivables

8.3 Property, Plant, Equipment, Library Book Stock and Heritage Assets

The valuation basis for land and buildings is as detailed in note 2.5(d). The revaluations were undertaken by an independent valuer at the dates specified in note 2.5(d)iii.

8.4 Reconciliation of non-current physical assets

Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the current and previous financial year are set out below.

Carrying amount means:

1. in relation to an asset, the amount at which the asset is recorded in the accounting records as at a particular date. In application to a depreciable asset, ‘carrying amount’ means the net amount after deducting accumulated depreciation; and
2. in relation to a class of assets, the sum of the carrying amounts of the assets in that class.

8.5 Other assets

Note 9: Liabilities

9.1 Employee entitlements

9.2 Payables

9.3 Other current liabilities

9.4 Schedule of commitments

*This expenditure is included in various items at note 6.4 Other expenses from ordinary activities.

NB: Commitments are GST inclusive where relevant.

The department leases property under operating leases expiring from one to ten years. Leases generally provide the department with a right of renewal at which time all terms are re-negotiated. Lease payments comprise a base amount plus an incremental contingent rental. Contingent rentals are based on either movements in the consumer price index or operating criteria.

9.5 Schedule of unquantifiable contingencies

At 30 June 2005 the department had a number of legal claims against it generally relating to personal injury arising from accidents on departmental premises. It is not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.

Note 10: Equity and movements in equity

10.1 Reconciliation of equity

*CLAF = Crown Lands Administration Fund

Nature and purpose of reserves

Asset revaluation reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets, as described in accounting policy note (2.5).

10.2 Asset revaluation reserve by class of asset

The balance within the asset revaluation reserve for the following class of assets is:

10.3 Administrative restructuring

As a result of a restructuring of administrative arrangements, the department assumed responsibility for Adult Education from TAFE Tasmania.

In respect of activities assumed, the net book values of assets and liabilities transferred to the department for no consideration and recognised as at 1 July 2004 were:

Note 11: Cash flow reconciliation

11.1 Reconciliation of cash per Statement of Financial Position to Statement of Cash Flows

11.2 Reconciliation of operating surplus to net cash provided by operating activities

11.3 Acquittal of Capital Investment Program

The works and services appropriation received during the year has been for the purpose of funding a number of specific projects. Expenditure on these projects, on a cash basis, is listed below.

a) Project expenditure

1. The budget identified for Community Health and Well Being is the capital component of the overall allocation of $20.4 million.

b) Classification of cash flows

Note 12: Actual staffing levels (full-time equivalent)

Note 13: Transactions and balances relating to a trustee or agency agreement

The department acts under a trustee arrangement in the administration of certain library and student funds. These funds are neither administered nor controlled. Accordingly they are not recognised in the financial statements. However, disclosure is made in aggregate of the amount collected and distributed to external parties during the reporting period and any amount undistributed at 30 June 2005.

Note 14: Financial instruments

Terms, conditions and accounting policies

Note 15: Administered statements

15.1 Administered revenue from state government

15.2 Australian government grants

15.3 Administered user charges

15.4 Administered fees and fines

15.5 Other administered revenues from ordinary activities

15.6 Administered expenses from ordinary activities

Note 15.7 Departmental administered outputs

Information about the outputs administered by the department and the expenses and revenue, which are reliably attributable to outputs, is set out in the Statement of administered outputs. Information about the outputs controlled by the department is set out in the Statement of outputs, note 7.2.

15.8 Statement of administered outputs

15.9 Administered cash and deposits

15.10 Administered receivables

15.11 Administered other current liabilities

15.12 Reconciliation of administered equity

15.13 Reconciliation of administered cash per schedule of assets and liabilities to schedule of cash flows

15.14 Administered cash flow reconciliation

15.15 Administered financial instruments terms, conditions and accounting policies